Solar and home insurance in Perth: what you need to know

Most Perth solar owners never tell their insurer they've installed solar. Many don't realise they need to, or assume the panels are automatically covered. In some policies, failing to notify voids cover for solar-related claims — and in others, the panels are covered as standard. The answer depends on your specific policy.

Here's what you need to check and what coverage actually looks like in practice.

Do you need to tell your insurer about solar?

Yes, in almost all cases.

Most home and contents insurance policies require you to notify your insurer of significant improvements to the property — and a $8,000–$15,000 solar installation qualifies. Failure to disclose can void your cover for claims related to the undisclosed change, or in some policies, void the entire policy.

The practical steps:

1. Call your insurer or log into your portal after solar installation
2. Notify them of the installation, including the approximate value of the system
3. Confirm whether this triggers a premium change (it usually will, modestly)
4. Get written confirmation that the system is covered

This takes 10–15 minutes and is worth doing.

What home insurance typically covers for solar

The coverage position varies by insurer, but standard home insurance in WA generally covers solar under the building policy as a fixed fixture — similar to how your hot water system or air conditioning unit is covered.

Typically covered:

• Storm damage (hail, wind damage to panels and mounting)
• Fire (including a fault-induced fire, if properly installed)
• Theft (panels removed from roof)
• Accidental damage to panels during roof repairs
• Lightning strike damage to inverter or panels

Typically not covered:

• Gradual deterioration (cells losing efficiency over time — this is normal degradation, not insurable damage)
• Damage caused by poor maintenance (nesting birds destroying wiring that was accessible and visible)
• Electrical/mechanical breakdown of the inverter (usually covered under product warranty, not home insurance, unless the policy has a "fusion" or "motor burnout" clause)
• Damage from illegal or uncertified installation

Battery systems: A home battery (Powerwall, BYD, Sungrow SBR etc.) should be added to your building insurance as a separate item with its own insured value. Confirm with your insurer whether the battery is covered under your existing building policy or requires a specific endorsement.

Premium impact

Insurers treat solar as a positive signal (higher-value property, owner-occupier investment in the home) and as a risk item (more wiring, higher rebuilding cost, potential fire risk). In practice, the premium increase is usually modest:

Typical premium increase: $50–$200/year for a standard residential solar system (6.6kW panels + 5kW inverter). Battery storage may add a further $50–$150/year.

The increase in insured value (your building sum insured should reflect the replacement cost of solar) is what drives the premium. If you haven't updated your sum insured to include solar, you're under-insured — which affects any claim proportionally, not just solar-related ones.

What isn't covered by insurance: the warranty layer

Most solar damage in Perth is wear-and-performance related rather than insurable damage. For these situations, warranty is the right instrument, not insurance:

Panel performance warranty: If panels degrade faster than warranted (e.g., below 80% of rated output at year 10 when the warranty guarantees 85%), the manufacturer should replace or compensate. This isn't an insurance claim.

Product warranty (manufacturing defects): A panel that delaminated, a junction box that failed, cells that shorted internally — these are manufacturer warranty claims. Typically 12–25 years product warranty depending on brand.

Inverter failure: Inverters fail. Within the warranty period (5–10 years for string inverters, 25 years for Enphase micro-inverters), failure is a warranty claim. Outside warranty, inverter replacement ($600–$1,500 installed) is your cost — not an insurance event unless caused by insured damage (e.g., a lightning surge that also blew out other appliances).

Installer guarantee: Workmanship issues (roof leaks from poor flashing around mounts, wiring exposed to UV) are the installer's liability, typically for 5 years post-installation under Australian consumer law.

Fire risk and insurance

Solar installation introduces DC wiring (higher voltage than standard household AC) from the roof down to the inverter. Properly installed by a CEC-accredited installer with AS4777 compliance, this is not a significant fire risk. Improperly installed systems (cable pinched under mounting hardware, inadequate terminations) have caused fires in Australia.

Most insurers ask whether the system was installed by a licensed/accredited installer. If it was not (e.g., a DIY installation or unaccredited installer), your fire damage claim may be denied on the grounds of the unsafe installation. CEC accreditation matters for the STC rebate and for your insurance cover validity.

Hail damage in Perth

Perth is not in Australia's high-hail-risk corridor, but significant hail events have occurred in recent years causing panel damage. Most quality panels (including REC, Q CELLS, Canadian Solar) are certified to IEC 61215 hail resistance (25mm hailstone at 23m/s), meaning they withstand typical hail. Extreme events exceed this.

If hail damages your panels, your home insurance building policy is the right claim avenue — this is a storm-damage event. Keep photos, have the system assessed by your installer, and notify your insurer promptly.

Practical checklist

• [ ] Notify insurer of solar installation within 30 days of commissioning
• [ ] Update building sum insured to reflect system replacement value
• [ ] Confirm battery is covered (or add as endorsement)
• [ ] Keep installation documentation (commissioning certificate, installer details) — needed for warranty and insurance claims
• [ ] Check policy wording on "fusion" / motor burnout cover for inverter

Insurance coverage details vary significantly between policies and insurers. This guide provides general information only — always confirm coverage specifics with your insurer and read your Product Disclosure Statement. This is not financial or insurance advice.